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> I don’t understand the resistance to acknowledging that inflation is the predictable effect of money printing. Because it only tells a fraction of the story,
by oivey 2y ago
> I don’t understand the resistance to acknowledging that inflation is the predictable effect of money printing.
Because it only tells a fraction of the story, if any. Again: why didn’t inflation explode between 2008 and the pandemic when way, way more money was being printed into the economy by quantitative easing?
You hand waived it away as due to cheap labor/imports/whatever. Pandemic induced supply chain collapses, not money printing, had a massive amount to do with inflation going through the roof. Businesses realizing they can gouge consumers who have no real recourse did, too.
Why only point at the stimulus while ignoring other money printing activities and downplaying all the other contributors to inflation?
- rayiner 2y ago> between 2008 and the pandemic when way, way more money was being printed into the economy by quantitative easing? The very helpful correction in a sibling comment notes that the majority of the change ($11 trillion) was from an accounting change. But even then, M1 money supply increased from $1.6 trillion to $4 trillion gradually from 2008 to 2020. It then increased from $4 trillion to (20-11.4 = 8.6 trillion) from February 2020 to June 2022. So that’s $2.4 trillion over 12 years due to QE, and $4.6 trillion over two years due to the pandemic response. How is that still not the obvious cause of the inflation?